Budget Insight 2010

2010-2011
Avais Hyder Liaquat Nauman

Chartered Accountants A Correspondent firm of RSM International
[BUDGET INSIGHT - 2010]
Finance Bill 2010
2010 2011
Avais Hyder Liaquat Nauman Chartered Accountants Pakistan
Nation wide presence with largest network of offices in 6 major cities. International presence with office in Kabul, Afghanistan. Personnel strength of around 300. Wide range of commerce/industry related services. Correspondent firm of RSM International. o RSM International is the sixth largest network of independent accounting and consulting firm in the world. o o o o RSM International has 93 affiliate member and correspondent firms in 76 countries. 736 offices worldwide. 32,492 staff including 3,150 partners Combined fee income of US$ 3.87 bn.
Avais Hyder Liaquat Nauman Chartered Accountants A Correspondent firm of RSM International
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With Compliment To our Valued Clients and Associates

We are pleased to present the 2010 Budget Insight as part of our continued services to provide all our clients and associates with up-to-date information affecting them and their business. This memorandum has been prepared as a general guide for the benefits of our clients and is available upon request. This is not an exhaustive commentary and only lays down interpretations of the amendments proposed in Finance Bill 2010 and takes into consideration important aspects of the changes made. It is recommended that the text of the Bill and the relevant notifications/provisions, where applicable, be referred to in considering the interpretation of any provision. These comments are correct to the best of our knowledge and belief at the time of printing. If you require any information or have enquiries with regard to the budget announcements, please do not hesitate to contact our Partners, Syed Naveed Abbas or Mr. Adnan Tirmizi. We trust that you will find this guidebook useful.
Avais Hyder Liaquat Nauman Chartered Accountants
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TABLE OF CONTENTS
SENIOR PARTNERS MESSAGE........................................................................................................... 1 STATE OF THE PAKISTAN ECONOMY.............................................................................................. 2 SUMMARY OF BUDGET 2010-11 ...................................................................................................... 6 INCOME TAX ..................................................................................................................................... 6 SALES TAX & FEDERAL EXCISE DUTY ...................................................................................... 9 CUSTOMS DUTY .............................................................................................................................10 PROPOSED AMENDMENTS IN THE INCOME TAX ORDINANCE, 2001.................................14 PROPOSED AMENDMENTS IN SALES TAX ACT, 1990 ..............................................................39 PROPOSED AMENDMENTS IN FEDERAL EXCISE ACT, 2005 ..................................................43
PROPOSED AMENDMENTS IN THE CHAIRMAN AND SPEAKER (SALARIES, ALLOWANCES AND PRIVILEGES) ACT, 1975 (LXXXII OF 1975) ..........................................48
PROPOSED AMENDMENTS IN CUSTOMS ACT, 1969 (IV OF 1969)......................................49
PROPOSED AMENDMENTS IN THE PETROLEUM PRODUCTS (SURCHARGE) ORDINANCE, 1961 (XXV OF 1961).................................................................................................52
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SENIOR PARTNERS MESSAGE

There is a dire need for revamping the taxation system on modern and progressive lines which is an essential pre-requisite for the containment of public debt and to control inflation on a sustained basis. The introduction of VAT, if properly managed would go a long way in achieving these goals. There is also an urgent need to heavily reduce government borrowings which have substantially increased over the past two years. Reduction in government borrowings together with rationalization of the tax structure would encourage savings and release larger financial resources to the private sector and would also help bring down further the mark-up rates. Modernization / rationalization of the tax system should include extension of direct taxation to agriculture and services sectors and expansion in the income tax base by bringing new companies / individuals in the tax net, by plugging loopholes, by removing concession and exemptions and by improving the tax administration. An ideal fiscal policy ensures economic growth by reducing deficit financing, putting no new or additional taxes on common man, encouragement for industrial investment and personal savings and a sizeable increase in the development outlay. No doubt fiscal space is terribly constrained due to debt servicing and defense, both of which appear to be irreducible rather in fact have continued to increase. In my message for Finance Bill 2008 I had talked of reducing the fiscal deficit to less than 5% of GDP which was in excess of 7% in the earlier fiscal year, the budgeted fiscal deficit is 4% of the GDP, which should be strictly followed as otherwise it is a cause of great concern as it negates all what is required to put the economy on the right track. I believe that only well tuned management of the economy will make it possible to achieve that while adopting practical austerity measures and curtailing lavish spending.
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STATE OF THE PAKISTAN ECONOMY

Due to inflation and economic crisis worldwide, Pakistan's economy reached a state of Balance of Payment crisis. "The International Monetary Fund bailed out Pakistan in November 2008 to avert this crisis and in July last year increased the loan commitment to $11.3 billion from an initial $7.6 billion." Economic Comparison of Pakistan 1999-2008 Indicator GDP GDP Purchasing Parity (PPP) Power 1999 $ 75 billion $ 270 billion $ 450 Rs. 305 billion $ 1.96 billion $ 7.5 billion $ 5.5 billion 2007 $ 160 billion $ 475.5 billion $ 925 Rs. 708 billion $ 16.4 billion $ 18.5 billion $ 11.2 billion 2008 $ 170 billion $ 504 billion $1085 Rs. 990 billion $ 8.89 billion $ 19.22 billion -
GDP per Capita Income Revenue collection Foreign reserves Exports Textile Exports
KHI stock exchange (100- $ 5 billion at 700 $ 75 billion at 14,000 $ 46 billion at 9,300 Index) points points points Foreign Direct Investment External Debt & Liabilities Poverty level Literacy rate Development programs $ 1 billion $ 39 billion 34% 45% Rs. 80 billion $ 8.4 billion $ 40.17 billion 24% 53% Rs. 520 billion $ 5.19 billion $ 45.9 billion Rs. 549.7 billion
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Since the beginning of 2008, Pakistan's economy has been in a state of stagnation. Security concerns stemming from the nation's role in the War on Terror have created great instability which is the main cause of a decline in FDI from a height of approximately $3.2 bn to $1.8 bn for the fiscal year 2009-10. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf. Combined with high global commodity prices, the dual impact has badly rattled Pakistans economy, with gaping trade deficits, high inflation and a crash in the value of the Rupee, which fell from 60-1 USD to over 80-1 USD over a period of a few months. Despite a modest recovery and stabilization the economy is still very fragile as the durability of the economic turnaround is far from assured given the significant challenges the economy faces. Secondly, not all sectors of the economy or regions of the country appear to have participated so far in the modest upturn. In order to meet the employment aspirations of the large number of entrants to the labour force, a higher sustained growth rate will need to be achieved in the medium term. A combination of limited fiscal space and rising spending, debt, and inflationary pressures, significantly reduce the governments ability to spend in order to stimulate the economy. Under the circumstances, the prudent course for the policy makers to follow in the near term remains the pursuit of greater fiscal consolidation through domestic resource mobilization, in conjunction with reducing the size of government, and improving the efficiency of public sector spending. The situation of public debt is worsening day by day. Pakistans total public debt stood at an estimated Rs. 8,160 billion as of end March 2010. At this level, public debt is equivalent to 56% of GDP, and 379% of total budgeted revenue for the year. Of the total, Rupee denominated debt amounted to 31% of GDP, while foreign currency denominated debt was the equivalent of 25% of GDP. The macroeconomic context remains difficult in the near term with continuing challenges. The global economy remains in turmoil, with uncertain prospects for demand for Pakistans exports. In addition, the energy and water shortage, and the internal security situation, may continue to constrain growth in 2010-11.
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The following table shows a comparison of macroeconomic indicators for the last two years: S.No. Indicator 1 2 3 4 5 6 2009-10 2008-09 1.1% 5.4% 22% 56% US $ 1,071 Remarks Favourable Unfavaourable Favourable Favourable Unfavourable
Gross Domestic Product 4.1% (GDP) Manufacturing Growth Inflation Rate Literacy Rate Per capita income sector 5.2% 11.5% 57% US $ 1,051
External Current Account 5.6% of GDP 8.3% of GDP Favourable (US $9.3 (US $ 13.9 Deficit Billion) Billion) Fiscal Deficit Foreign Reserves 5.2% of GDP Exchange US $ Billion 7.6% of GDP Favourable
7 8 9 10 11
16 US $ Billion CCC
11.6 Favourable Favourable
International Credit Rating B Minus (Moody) FDI Unemployment Rate US$ billion 5.5%
1.8 US$ 3.2 billion Unfavourable 5.2% Unfavourable
The medium term prospects for the economy however are promising, provided the current path of reform is not abandoned. Pakistan has achieved fairly impressive early success in its efforts to stabilize the economy from a perilous state of affairs in the aftermath of the macroeconomic crisis of 2008. Protecting the recovery is of paramount importance, and the government needs to keep a strong check on public spending. Greater realism about the prospects and accurate forecasts about resources and available funds for the development plans at each level of government is needed. A number of interlinked actions are needed in the coming year:
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Checking inflationthis involves limiting borrowing by the government and the public sector. Bringing people to the centre stage, by appropriately designed employment and training programs to protect those in strifeaffected areas, and new entrants to the labour force.
But there are major risks to the growth and stabilization prospects if there is Non-implementation of the reform of the GST, leading to a VAT, or other significant tax broadening measures This might affect the phased nature of fiscal devolution envisaged under the Eighteenth Constitutional amendment (to be effective from 2011-12), in the context of the frontloaded transfers to the provinces under the Seventh NFC Award (effective from July 1, 2010); Larger than budgeted security related expenditures; Inadequate targeting of subsidies, Failing to reform public sector enterprises, including the power sector, with no resolution of the energy circular debt issue; Continued overhang of commodity financing debt stock, if unchecked, threatens to constrict access to bank credit by the private sector, while simultaneously increasing the interest rates in the economy; A deterioration of the internal security situation.
The tipping of the world economy into a severe recession in the wake of the Euro zone debt crisis, could hurt Pakistans exports as well as remittances on the one hand, but could reduce international prices of key commodities such as oil, on the other. With relatively low levels of capacity utilization in the economy, a turnaround in investor confidence can unleash large productivity gains even with low levels of fixed investment. Nonetheless, overall, a combination of rising fiscal pressures, a developing debt overhang, and an uncertain path of inflation in the near term, significantly reduces policy space to stimulate the economy. For the longer term, efforts to meaningfully address Pakistans perennial structural challenges, such as the abysmally low tax/GDP ratio and low overall productivity in the economy, are more than likely to unlock Pakistans substantial economic potential.
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SUMMARY OF BUDGET 2010-11

INCOME TAX
i. For taxpayers deriving their incomes from Salary and business, the limit of Basic Exemption is proposed to be enhanced from Rs.200,000/- to Rs.300,000/- in respect of Salaried taxpayers, while in the respect of Non-Salaried taxpayers it has been proposed to be enhanced from Rs.100,000/- to Rs.300,000/-. The maximum rate of advance tax deductible under section 235 on monthly electricity bills is proposed to be reduced from 10% to 5%, on the amount of the bills payable. Senior Citizens of the age of 60 years or more, are to be eligible for relief of 50% of tax on their income, if their income does not exceed Rs.1,000,000/- as compared to previous maximum limit of Rs.750,000/-. However this relief shall not be available on income subject to Presumptive Tax Regime. To rehabilitate the economy of Khyber Paktunkhwa, FATA and PATA, some amendments are proposed to be introduced in the Income Tax Law. These measures provide following reliefs to industrial and commercial taxpayers hailing from severely and moderately affected areas, as prescribed: a. Waiver of entire amount of default surcharge & penalty till 30th June 2010; b. Exemption from advance tax on electricity for tax years 2010 and 2011; c. Exemption from withholding tax on exports; d. Enhancement of income tax exemption limit from Rs.0.1 million to Rs.0.3 million; e. Exemption from advance tax on import of plant and machinery upto 30th June 2011; However these concessions shall not be available to manufacturers and suppliers of cement, sugar, beverages and cigarettes. v. For the wellbeing of disabled persons, 100% depreciation expense can be claimed on Ramp built to provide access to disabled persons, is proposed through a new provision to be inserted in the law. Exemption from taxation of perquisites on waiver of employees obligation to pay or repay, an amount owed to employer, is proposed.
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In order to facilitate the withholding agents, instead of e-filing monthly, quarterly and annual withholding tax statements, the e-filing of only quarterly withholding tax statements is proposed; A Tax credit for BMR (Balancing, Modernization & Replacement) costs incurred by such a company is proposed to be provided @ 10% for the tax year of its incurrence. This concession has been proposed to be admissible for the tax years 2011 to 2015; To encourage enlistment of corporate sector, a 5% tax credit is proposed to be allowed to a company in the tax year of its enlistment. In order to align with rest of the scheme, 10% withholding tax deductible on Government Securities is proposed to be a FINAL tax. Withholding tax deductible on debt instruments is proposed to be a FINAL tax, in order to relieve the non-resident taxpayers of statutory requirement for filing income tax return. For providing incentive to foreign lenders for tax-free repatriation of profits earned on foreign industrial loans, Clause 72(iii) of Part-IV of Second Schedule to the Income Tax Ordinance 2001 is proposed to be re-instated. The maximum rate of withholding tax deductible on payments made to non-resident taxpayers who are not subject to Avoidance of Double Taxation Treaties (other than payments made on account of royalty and fee for technical services) is proposed to be @ 20% instead of 30%; The rate of withholding tax deductible @ 20% on cross-word puzzles is proposed to be reduced to a rate of 10%; A uniform tax rate for small companies as well as AOPs is proposed @ 25% of their taxable income. Advance tax deductible on imports made by commercial importers is proposed to be enhanced to @5% which would continue to be FINAL tax. Tax on capital gains accruing on account of holdings of stocks/shares/securities for six-months or less is proposed @ 10%, while holdings of stocks/shares/securities exceeding six-months is proposed @ 7.5%. However no tax has been proposed on such capital gains where holding period exceeds 12 months. Advance tax deductible on goods transport vehicles under Item (1) of Division-III of Part-IV of Second Schedule to the Income Tax Ordinance 2001 are proposed to be abolished, and tax is proposed @ Re.1 per kilogram of the laden weight capacity of goods transport vehicle. No change has been proposed in the rate of tax on goods forwarding contracts, which remain taxable at the existing rate of 2%.
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Advance tax deductible on Cash Withdrawals from Banks, various banking transactions including modes like withdrawals through Demand Draft, Pay Order, Online Transfer, Telegraphic Transfer, TDR, CDR, STDR and RTC, are proposed to be subject to 0.3% deduction of the advance tax, if such transactions exceed threshold of Rs.25,000/- in a single day. The advance tax is adjustable. Turnover Tax on Loss Making Companies is proposed to be enhanced to @ 1%. Withholding tax on gross value of Inland Air Ticket has been proposed @ 5%. Under the scheme the Inland Air-Ticketing persons shall withholding the tax, which will be adjustable against the tax liability of the purchaser of such ticket; Section 4 of the Income Tax Ordinance 2001 is proposed to be amended to include a reference regarding tax credit on account of share of profits received by a company from an AOP. In order to bring clarity, expression CD appearing in Division-V of Part-IV of First Schedule to the Income Tax Ordinance 2001 is proposed to be replaced by any electronic medium. The mandatory requirement of Filing of Wealth Statement by the Taxpayers in FTR cases with yearly tax amounting to Rs.35, 000/- is proposed to be included in section 116 of the Income Tax Ordinance 2001. For enforcing checks on non-compliant taxpayers, and to encourage complianttaxpayers, a new section 181A is proposed to be inserted in the Ordinance. In order to streamline accounting of Advance Tax payments, certain amendments are proposed in section 147 of the Ordinance, so that quarterly advance tax payments are paid by 25th of last month, as compared to earlier requirement of such payments by 15th of every month after the end of a quarter. Through an editorial amendment, the reference of minimum tax on importer of edible oil and packing materials under section 148, is proposed to be incorporated in provisions referring to final tax on the income of an importer. For the purposes of clarity, through an editorial amendment the reference of subsection (1AA) of section 152 is proposed to be inserted in sub-section (2) of section 152. In order to rationalize the definition of Prescribed Persons as given in sub-section (9) of section 153, an individual with turnover of Rs.50 millions or above is proposed to be added. In order to perceive better audit of withholding taxes, the withholding agents shall be required to e-file quarterly statements even in the cases where no-tax was deducted. For the purpose of alignment and uniformity, the words a person
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collecting tax are proposed to be replaced with the words a withholding agent in sub-section (2) of section 165. Editorial amendments in Section 236A of the Ordinance are proposed in order to bring clarity and remove confusion about the charge of advance tax on public auction of all kind of property including confiscated or attached goods. On merger of Investment Corporation of Pakistan with Industrial Development Bank, the exemption available to ICP on dividend received from any other company is proposed to be withdrawn. Exemption under clause (52) of Part-IV of the Second Schedule to the Income Tax Ordinance 2001 available to Vanaspati Ghee or Oil is proposed to be withdrawn, in view of demise of SRO. 593(I) 1991 Dated 30th June 1991.
SALES TAX & FEDERAL EXCISE DUTY

MEASURES (FY 2010-11) The budgetary measures pertaining to Sales Tax & Federal Excise are primarily aimed at: i. ii. iii. Enhancing the federal excise and sales tax revenues without inducing any additional burden on the common man and poor segments of society. Distributing the burden of extra taxation measures on all sectors of the economy. Enhancing tax incidence on cigarettes which are injurious to health.
BRIEF POINTS ON MAJOR FISCAL MEASURES: RELIEF MEASURES i. ii. Withdrawal of restriction on adjustment of Federal Excise Duty paid on beverage concentrate. Withdrawal of restriction on adjustment of FED paid on beverage concentrate is aimed at attracting new investment in beverage industry and reducing the prices of aerated waters in the country.
REVENUE MEASURES i. Increase in the rate of sales tax from 16% to 17%.
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Increase in the rate of sales tax from 16% to 17% is aimed at distributing the burden of extra tax measures on all sectors of the economy.
Enforced through amendment in Section 3 of the Sales Tax Act, 1990, effective from the 1st July, 2010 and Notifications Nos. SRO 395 to 398(I)/2010, dated 05.06.2010. i. ii. Increase in rate of Federal Excise Duty on Natural Gas from Rs. 5.09 per MMBTu to Rs. 10/- per MMBTu. Enhancement of rate of Federal Excise Duty on Natural Gas is aimed at implementation of the NFC recommendations.
Enforced through amendment in Table I of First Schedule to the Federal Excise Act, 2005, effective from the 1st July, 2010. i. ii. Upward revision of Federal Excise duty structure on cigarettes. Enhancement of rate of Federal Excise Duty on locally produced Cigarettes in different slabs is aimed at bringing tax incidence on cigarettes up to the international standards and discouraging smoking.
Enforced through amendment in Table I of First Schedule to the Federal Excise Act, 2005, effective from the 6th June, 2010. i. ii. Levy of Federal Excise Duty @ Rs. 1/- per filter rod of cigarettes. Levy of Federal Excise Duty @ Rs. 1/- per filter rod for cigarettes is aimed at realization of revenue on sale of filter rods to unregistered and illicit manufacturers of cigarettes. Enforced through amendment in Table I of First Schedule to the Federal Excise Act, 2005, effective from the 6th June, 2010. Levy of 10% Federal Excise Duty on electricity intensive home appliances Levy of Federal Excise Duty on electricity intensive home appliances is aimed at reducing the consumption of electricity and generation of some extra revenue.
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Enforced through amendment in Table I of First Schedule to the Federal Excise Act, 2005, effective from the 6th June, 2010.
CUSTOMS DUTY 10
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Policy Objectives: i. ii. iii. iv. v. Relief to general public Minimizing the cost of doing business. Industrial incentives for growth and expansion. Boosting the export oriented sectors. Amendments in legal provisions to make them more transparent and simple.
1) Relief Measures: i. ii. iii. iv. v. vi. vii. Reduction of customs duty on crude palm oil from Rs.9,000/MT to Rs.8,000/MT to decrease cost of vegetable ghee and oil. Exemption of customs duty on import of photographic plates and film for X-ray to lower cost of medical diagnoses for general public. Reduction of duty to 5% on pharmaceutical raw materials and drugs to provide relief to common man. Reduction of duty on equipment for dedicated use of renewable energy to encourage use of renewable energy resources. Reduction of duty on raw materials for laundry soap and detergent to provide relief to general public. Concession of customs duty on import of Road Sweeping Lorries to increase efficiency of municipal and local governments. Exemption of customs duty on import of fully dedicated LPG buses and dispensing equipment to encourage use of cheaper environment friendly fuel.
2) Incentive to Local Industry: i. ii. iii. iv. Exemption of customs duty on import of raw materials/components for energy saving lamps to support its local manufacturers. Exemption of customs duty and sales tax on rice processing machinery to boost value addition and export of rice. Reduction of duty on raw materials of leather industry to encourage leather exports. Reduction of duty on raw materials of glass industry to make them more competitive.
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v. vi.
Reduction of duty on secondary quality tin mill black plate for manufacturers of tin plate to reduce their manufacturing cost. Exemption of duty on milk filters to support dairy industry.
3) Tariff rationalization: i. ii. iii. iv. v. vi. vii. Exemption of duty on other than pure bred breeding animals to bring their duty at par with pure bred breeding animals. Rationalization of duty on glucose and glucose syrup to avoid misdeclaration. Rationalization of duty on prepared industrial colours to rationalize their duty structure. Inclusion of LED T.V. in industry specific concessionary regime to encourage their local manufacturing. Levy of 5% concessionary duty on copper & aluminum tubes and electro galvanized steel sheets if imported by manufacturers of evaporators and washing machines. Exemption of duty on silk yarn spun from other than silk waste to rationalize tariff. Rationalization of duty on two PCTs of adhesives.
4) Miscellaneous: i. ii. iii. iv. Creation of separate PCT code for auto parts scrap in pressed bundles to streamline its clearance process. Correction of PCT code for asphalt paver. Correction in description of PCT codes 6813.2010 & 6813.8110. Rationalization of PCT code 3920.6300 with Pak-China FTA.
5) Legal Changes in Customs Act, 1969 i. Keeping in view the change in rate of exchange of US $ vis--vis Pak rupees and increase in prices of gold and other items the limit for taking cognizance under the smuggling related provisions is being enhanced from Rs.50,000/- to Rs.150,000/-. The valuation formula for the goods to be exported is being simplified by including regulatory duty instead of export duty in section 25 in sub-section (15)(b). The customs value determined under section 25A shall be applicable until and unless revised or superseded or rescinded by the competent authority.
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Section 25D is being elaborated by inserting the words under section 25A in order to clarify that review application before Director General Valuation shall lie in cases of the values determined by Director Valuation or Collector of Customs under section 25A. For filing a review application under section 25D, the time period of 30 days from the date of determination of customs value is being fixed. Section 32 is being amended so that cognizance could be taken in cases where revenue is paid through self assessment in order to curb the tendency of misdeclaration and less payment of revenue through computerized clearance system. Section 32A is being amended by inserting words and comma payment of revenue through self-assessment, to curb the tendency of deliberate wrong self-assessments on the part of the importers. Proviso to sub-section (1) of section 79 is being amended in order to restrict the facility of filing of goods declaration after examining the goods by the importer to only in case of used goods. Besides, the permission for filing of goods declaration after examination of goods can now only be granted by the Additional Collector. Section 81, sub-section (2) is being amended in order to finalize the cases of provisional assessment within three months. Section 81, sub-section (4) is being amended in order to streamline procedure for passing an order after final determination of provisional assessment. Section 156, sub-section (1), is being amended to enhance the general penalty to the extent of Rs.50,000/-. Section 156, sub-section (1), clause (64) is being amended to enhance the penalty to the extent of not less than twice the value of the offending goods besides the confiscation of goods for violation of section 128 and 129 of Customs Act, 1969. This penalty will create a deterrence vis--vis the smuggling of transit trade goods. In section 194A, sub-section (1), a new clause (e) is being added which would enable any person or an officer of Customs to file an appeal before the Appellate Tribunal in cases of review order passed by the Director General Customs Valuation under section 25D provided the appeal is heard by the double bench of the Appellate Tribunal.
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PROPOSED AMENDMENTS IN INCOME TAX ORDINANCE, 2001

Section 2(2) (Definition substituted) Appellate Tribunal
THE
This amendment seeks to provide unified Appellate Tribunal for domestic taxes. Many such changes have been proposed to brought in line the change already made by unifying domestic taxes. These changes had been made vide Finance (Amendment) Ordinance, 2009. However, these are now being proposed in the Finance Bill to obtain the approval of the National Assembly. Appropriate officer and Associate (associated persons) As already discussed above, the amendment seeks to change the names of the authorities mentioned in these definitions to represent the change already introduced by unifying three domestic taxes under one authority. i.e. Inland Revenue. These changes had been made vide Finance (Amendment) Ordinance, 2009. There are many such changes in the Income Tax Ordinance, 2001 the detail of which is as under: Section 2(11A), Section 2(13), Section 2(13A), Section 2(38A) & Section 122A(1)
Section 13 (Amendment in section)
Value of perquisites At the end of sub section 7 of section 13, following proviso shall be inserted: Provided that this sub section shall not apply to such benefit arising to an employee due to waiver of interest by such employee on his account with the employer. The said proviso seeks to provide exemption in such benefit to employee due to waiver of his right of interest on any account balance of employee with the employer.
Section 37
Capital Gains
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(Amendment in section)
The proposed amendment shall exclude shares of public companies including the vouchers of Pakistan Telecommunication Corporation, modaraba certificates or any instrument of redeemable capital as defined in the Companies Ordinance, 1984 (XLVII of 1984) from the purview of section 37 as these are now dealt with u/s 37A specifically. Further it is proposed to exclude stocks and shares from the definition of capital assets.
Section 37A (Newly inserted section)
Capital Gains on sale of Securities The purpose of the proposed amendment is to tax the capital gains arising on sale of securities as under: i. ii. iii. Securities sold within 6 months of their purchase shall be taxable @ 10%. Securities sold within 6 to 12 months of their purchase shall be taxable @ 7.5%. Securities sold after 12 months of their purchase shall not be taxable.
Provided further that the provisions shall not apply to a banking company. Securities means shares of a public company, vouchers of Pakistan Telecommunication Corporation, Modaraba Certificates or instruments of redeemable capital. The amount of capital gain under this section shall be treated as a separate block of income. Section 65B (Newly inserted section) Tax Credit for Investment 1) where a taxpayer being a company invests any amount in the purchase of a plant and machinery for installation, for the purposes of balancing, modernization and replacement in an industrial undertaking set up in Pakistan and owned by it, credit equal to ten per cent of the tax payable shall be allowed for the tax year in which the said costs are incurred against the tax payable by the company. 2) The provisions of sub-section (1) shall apply if the plant and
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machinery is purchased and installed at any time between the first day of July, 2010, and the 30th day of June, 2015. 3) Where any credit is allowed under this section and subsequently it is discovered by the Commissioner Inland Revenue that any one or more of the conditions specified in this section was, or were, not fulfilled, as the case may be, the credit originally allowed shall be deemed to have been wrongly allowed and the Commissioner Inland Revenue may, notwithstanding anything contained in this Ordinance, re-compute the tax payable by the taxpayer for the relevant year and the provisions of this Ordinance shall, so far as may be, apply accordingly. The proposed tax credit shall be in addition to tax credits available to a taxpayer. Section 65C (Newly inserted section) Tax Credit for Enlistment Where a taxpayer being a company opts for enlistment in any registered stock exchange in Pakistan, a tax credit equal to five per cent of the tax payable shall be allowed for the tax year in which the said company is enlisted. The proposed tax credit shall be in addition to tax credits available to a taxpayer and it will promote companies to be listed on stock exchange. Section 87 (Newly inserted section) Deceased Individuals
The proposed change shall create 1st charge of tax recovery on sub- deceaseds estate against his liability. Unexplained income or assets The proposed amendment seeks to tax the unexplained income or asset in the tax year to which it relates, currently it was taxable in the year preceding to tax year in which it was discovered. The effect of proposed omission is that the unexplained income or asset relating to a period beyond preceding five tax years or assessment years can now be probed into by the Commissioner and included in the
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taxpayers income. Section 113(1) (Amendment in section) Minimum tax on the income of certain persons The proposed amendment seeks to levy minimum tax on individuals having turnover of fifty million rupees or above in the tax year 2009 or in any subsequent tax year and association of persons having turnover of fifty million rupees or above in the tax year 2007 or in any subsequent tax year. The rate of minimum tax is proposed to be 1% instead of 0.5%. Section 114, Amendment through Finance (Amendment) Ordinance, 2009 119, 121 & Section 114(6), 114(6A), Section 119(6), Section 121(1)(a) & Section 122 122(3) proposed to be substituted have already been incorporated (Section through Finance (Amendment) Ordinance, 2009 which are now added substituted) in the Finance Bill, 2010 for approval by National Assembly. Section 115(4B) (sub-section omitted) 116(4) (Newly inserted section) Section 116(2A) (Amendment in section) subWealth statement According to the proposed amendment, Where a person files a return in response to a provisional assessment under section 122C, he shall furnish a wealth statement for that year along with that return and such wealth statement shall be accompanied by a wealth reconciliation statement and an explanation of sources of acquisition of assets specified therein. Persons not required to furnish a return of income The mandatory requirement of Filing of Wealth Statement by the Taxpayers in FTR cases with yearly tax amounting to Rs.35,000/- is proposed to be included in section 116 of the Income Tax Ordinance 2001.
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Section 118(3) (section substituted)
Method of furnishing of returns and other documents A return of income for any person (other than a company), an Annual Statement of deduction of income tax from salary, filed by the employer of an individual or a statement required under sub-section (4) of section 115 shall be furnished as per the following schedule, namely:(a) In the case of an Annual Statement of deduction of income tax from salary, filed by the employer of an individual, return of income through e-portal in the case of a salaried person or a statement required under sub-section (4) of section 115, on or before the 31st day of August next following the end of the tax year to which the return, Annual Statement of deduction of income tax from salary, filed by the employer or statement relates. (b) in the case of a return of income for any person (other than a company), as described under clause (a), on or before the 30th day of September next following the end of the tax year to which the return relates. The proposed amendment seeks to provide the dates of filing of return of income for various persons.
Section 122 (Newly inserted section)
Amendment of assessments The following section is proposed to be inserted: The Commissioner is deemed to have, and always had, the powers to amend or further amend an assessment order under sub-section (5A), where appeal has been filed or decided against the order of the Commissioner, in respect of any point or issue which was not the subject matter of such appeal. Provisional assessment According to this new section where a person fails to furnish return of total income for any tax year in response to a notice u/s 114(3) & (4), the commissioner may make a provisional assessment of taxable income and tax liability. Provisional assessment order shall be considered as final assessment
Section 122C (Newly inserted section)
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order after the expiry of 60 days from the service of order of provisional assessment, if the return of total income along with wealth statement is not filed within the said period of 60 days. Section 124 (Amendment in section) Section 127 (Amendment in section) Section 130 (Amendment in section) Section 134A (Amendment in section) Section 137 (Amendment in section) Section 138B (Newly inserted section) Assessment giving effect to an order Certain editorial changes are proposed by the finance bill to remove editorial mistakes. Appeal to the Commissioner (Appeals) According to the proposed amendment appeal fee against an assessment order shall be Rs. 1,000/- in case of company and Rs. 200/for other than company. Appointment of the Appellate Tribunal According to the proposed amendment Collector having at lease 5 years experience shall also be eligible for the appointment as an accountant member of Appellate Tribunal. Alternative Dispute Resolution Editorial changes are proposed for the harmonization of the nomenclature of tax authorities. Due date for payment of tax According to the proposed amendment tax payable as a result of provisional assessment order made u/s 122C shall be payable after the period of 60 days from the date of service of the notice. Estate in bankruptcy According to the proposed amendment if a taxpayer is declared bankrupt, the tax liability under this Ordinance shall pass on to the estate in bankruptcy. It shall be considered as current expenditure and shall have preference over other creditors.
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Section 146B (Amendment in section) Section 147 (Amendment in section)
Tax arrears settlement incentives scheme The word additional tax substituted with default surcharge by the Finance (amendment) Ordinance, 2009. Advance tax paid by the taxpayer According to the proposed amendment Association of Persons are required to pay advance tax irrespective of their latest assessed taxable income. Further, individuals are only required to pay advance tax if their latest taxable income exceeds Rs. 500,000/-. Previously, Individuals & AOPs are required to pay advance tax if their latest taxable income exceeds Rs. 200,000/-. According to the proposed amendment AOPs are required to pay advance tax according to their quarterly turnover as like companies. Further individuals and AOPs are required to pay advance tax as follows: Quarter September December March June Proposed 25th of September 25th of December 25th of March 15th of June Existing 15th of October 15th of January 15th of April 15th of June
Advance tax on capital gains is proposed to be as follows which is payable within 7 days after the close of each quarter: Period Where holding period of a security is less than six months Where holding period of a security is more than six months but less than twelve months. Rate 2% 1.5%
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Section 148 (Amendment in section) Section 151 (Amendment in section) Section 152 (Amendment in section)
Imports Proposed amendment clarifies that tax on import on edible oils shall not be final but minimum tax. Profit on debt According to the proposed amendment tax deducted on profit on debt from Debt instruments, Government securities including Treasury Bills and Pakistan Investment Bonds shall be final tax on profit on debt. Payments to non-residents The maximum rate of withholding tax deductible on payments made to non-resident taxpayers who are not subject to Avoidance of Double Taxation Treaties (other than payments made on account of royalty and fee for technical services) is proposed to be @ 20% instead of 30%. Payments for goods and services According to the proposed amendment an individual having turnover of Rs 50 million or above in the tax year 2009 or in any subsequent tax year shall withheld tax while making payments of goods and services.
Section 155 & Income from property 169 According to the proposed amendment tax deducted under this section (Amendment shall not be the final tax on the income from property. However, according to the proposed amendment in section 169 income derived in section) by a person under income from property shall be considered as assessment under section 120 and the person shall not be required to furnish a return of income under section 114 for the year. Further, expression an assessment shall be treated to have been made under section 120 has been explained. Section 165 (Amendment in section) Statements According to the proposed amendment every person collecting tax under Division II of this Part III of Chapter XII or deducting tax from a payment under Division III of this Part IV of Chapter XII shall e-file the
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withholding statements quarterly with following due dates: Quarter September Quarter December Quarter March Quarter June Quarter Section 174 (Amendment in section) Records According to the proposed amendment the accounts and documents shall be maintained for 5 years after the end of the tax year to which they relate. Currently, accounts and documents needs to be maintained for 6 years. Further, where any proceeding is pending before any authority or court taxpayer shall maintain the record till final decision of the proceedings. Section 176 & Notice to obtain information or evidence 210 According to the proposed amendment the commissioner is also (Amendment authorized to appoint firm of chartered accountants to conduct the in section) audit u/s 177. U/s 210, a firm of Cost and Management Accountants may also be appointed to conduct the audit of persons. Section 177 (Amendment in section) Audit The amendment has already been made through Finance (amendment) Ordinance, 2009. However, this is now being proposed in the Finance Bill to obtain the approval of the National Assembly. Active taxpayers list The Board shall have the power to institute active taxpayers list. Active taxpayers list shall be regulated as may be prescribed. Due date 20th October 20th January 20th April 20th July
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Section 182 (Section substituted)
Offences and penalties Offences and penalties which were given in sections 182, 183, 184, 185, 186, 187, 188, 189 & 190 have been consolidated into this newly substituted section with revised rates. Further, no penalty shall be payable unless an order in writing is passed by Commissioner, Commissioner (Appeals) or Appellate Tribunal. Accordingly, other sections relating to offences and penalties have been deleted. Offences Where any person fails to furnish a return of income or a statement as required under section 115 or wealth statement or wealth reconciliation statement or statement under section 165 within the due date Any person who fails to issue cash memo or invoice or receipt when required under this Ordinance or the rules made there under. Penalties Relevant section
Such person shall pay 114, 115,116 and 165 a penalty equal to 0.1 % of the tax payable for each day of default subject to a minimum penalty of five thousand rupees and a maximum penalty of 25% of the tax payable in respect of that tax year Such person shall pay a penalty of five thousand rupees or three per cent of the amount of the tax involved, whichever is higher. 174 and Chapter VII of the Income Tax Rules
Any person who is Such person shall pay required to apply for a penalty of five registration under this thousand rupees. Ordinance but fails to make an application for registration
181
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Any person who fails Such person shall pay to notify the changes a penalty of five of material nature in thousand rupees. the particulars of registration. Any person who fails to deposit the amount of tax due or any part thereof in the time or manner laid down under this Ordinance or rules made there under. Such person shall pay a penalty of five per cent of the amount of the tax in default. For the second default an additional penalty of 25% of the amount of tax in default. For the third and subsequent defaults an additional penalty of 50% of the amount of tax in default. Any person who repeats erroneous calculation in the return for more than one year whereby amount of tax less than the actual tax payable under this Ordinance is paid. Any person who fails to maintain records required under this Ordinance or the rules made there under. Such person shall pay a penalty of five thousand rupees or three per cent of the amount of the tax involved, whichever is higher.
181
137
137
Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of tax on income whichever is higher
174
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Where a taxpayer who, without any reasonable cause, in non compliance with the provisions of section 177: a) fails to produce the a) Such person shall record or pay a penalty of documents on five thousand receipt of first rupees; notice; b) such person shall b) fails to produce the pay a penalty of record or ten thousand documents on rupees receipt of second c) such person shall notice; and pay a penalty of c) fails to produce the fifty thousand record or rupees documents on receipt of third notice. Any person who fails to furnish the information required or to comply with any other term of the notice served under section 176 Any person who: Such person shall pay a penalty of five thousand rupees for the first default and ten thousand rupees for each subsequent default.
177
176
Such person shall pay 114,115,116,174,176, a penalty of twenty a) makes a false or 177 and general. five thousand rupees misleading or 100% of the statement to an amount of tax shortfall Inland Revenue whichever is higher: Authority either in
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writing or orally or electronically including a statement in an application, certificate, declaration, notification, return, objection or other document including books of accounts made ,prepared, given, filed or furnished under this ordinance; b) furnishes or files a false or misleading information or document or statement to an Income tax Authority either in writing or orally or electronically; c) omits from a statement made or information furnished to an Income tax Authority any matter or thing without which the statement or the information is false or misleading in a
Provided that in case of an assessment order deemed under section 120, no penalty shall be imposed to the extent of the tax shortfall occurring as a result of the taxpayer taking a reasonably arguable position on the application of this Ordinance to the taxpayers position.
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material particular. Any person who denies or obstructs the access of the Commissioner or any officer authorized by the Commissioner to the premises, place, accounts, documents, computers or stocks. Where a person has concealed income or furnished inaccurate particulars of such income, including but not limited to the suppression of any income or amount chargeable to tax, the claiming of any deduction for any expenditure not actually incurred or any act referred to in sub-section (1) of section 111, in the course of any proceeding under this Ordinance before any Income tax authority or the appellate tribunal. Such person shall pay a penalty of twenty five thousand rupees or one hundred per cent of the amount of tax involved, whichever is higher. 175 and177
Such person shall pay a penalty of twenty five thousand rupees or an amount equal to the tax which the person sought to evade whichever is higher. However, no penalty shall be payable on mere disallowance of a claim of exemption from tax of any income or amount declared by a person or mere disallowance of any expenditure declared by a person to be deductible, unless it is proved that the person made the claim knowing it to be wrong.
20, 111 and General.
Any person who Such person shall pay obstructs any Income a penalty of twenty
209, 210 and General
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tax Authority in the five thousand rupees. performance of his official duties. Any person who contravenes any of the provision of this Ordinance for which no penalty has, specifically, been provided in this section. Any person who fails to collect or deduct tax as required under any provision of this Ordinance or fails to pay the tax collected or deducted as required under section 160. Section 183 (Section substituted) Such person shall pay a penalty of five thousand rupees or three per cent of the amount of tax involved, whichever is higher. General.
Such person shall pay 148,149,150,151,152, a penalty of twenty 153, 153A, 154, 155, five thousand rupees 156, 156A, 156B, or the 10% of the 158, 160, 231A, amount of tax 231B, 233, 233A, 234, 234A, 235, 236, whichever is higher. 236A.
Exemption from penalty and default surcharge The Federal Government may, by notification in the official Gazette, or the Board by an order published in the official Gazette for reasons to be recorded in writing, exempt any person or class of persons from payment of the whole or part of the penalty and default surcharge payable under this Ordinance subject to such conditions and limitations as may be specified in such notification or, as the case may be, order. Trial by Special Judge The Federal Government may, by notification in the official Gazette, appoint as many special judges as it may consider necessary, and where it appoints more than one Special Judge, it shall specify in the notification the territorial limits within which each of them shall exercise jurisdiction.
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Section 207 (Section substituted) Section 208 (Amendment in section)
Income tax authorities The amendment has already been made through Finance (amendment) Ordinance, 2009. However, this is now being proposed in the Finance Bill to obtain the approval of the National Assembly. Appointment of income tax authorities The proposed amendment substitutes clause (1) as follows: The Board may appoint as many Chief Commissioners Inland Revenue, Commissioners Inland Revenue, Commissioners Inland Revenue (Appeals), Additional Commissioners Inland Revenue, Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Inland Revenue Officers, Inland Revenue Audit Officers, Superintendents Inland Revenue, Inspectors Inland Revenue, Auditors Inland Revenue and such other executive or ministerial officers and staff as may be necessary. Selection for audit by the Board The Board may select persons or classes of persons for audit of Income Tax affairs through computer ballot which may be random or parametric as the Board may deem fit. Audit of Income Tax affairs of persons selected under sub-section (1) shall be conducted as per procedure given in section 177 and all the provisions of the Ordinance, except the first proviso to sub-section (1) of section 177, shall apply accordingly. For the removal of doubt it is hereby declared that Board shall be deemed always to have had the power to select any persons or classes of persons for audit of Income Tax affairs.
Section 214C (Newly inserted section)
Computation of limitation period According to the proposed amendment while calculating the limitation period, the period for which any proceedings for the tax year remained pending before any Court, Appellate Tribunal or any other Authority shall also be considered.
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Bar of suits in Civil Courts Following new clause is proposed to be inserted: Notwithstanding anything contained in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Ordinance, rules, instructions or direction made or issued there-under without the prior approval of the Board Advance tax on transactions in bank According to the proposed amendment advance tax deductible on Cash Withdrawals from Banks, various banking transactions including modes like withdrawals through Demand Draft, Pay Order, Online Transfer, Telegraphic Transfer, TDR, CDR, STDR and RTC, are proposed to be subject to 0.3% deduction of the advance tax, if such transactions exceed threshold of Rs.25,000/- in a single day. The advance tax is adjustable. Further, advance tax shall not be collected where withdrawals are made by Federal Government, Provincial Government, Foreign Diplomat or person having certificate from the Commissioner that his income during the tax year is Exempt.
Section 233A (Amendment in section) Section 236A (Amendment in section)
Collection of tax by a stock exchange registered in Pakistan According to the proposed amendment advance tax collected by the stock exchanges shall be now adjustable instead of minimum tax. Advance tax at the time of sale by auction Editorial amendments in Section 236A of the Ordinance are proposed in order to bring clarity and remove confusion about the charge of advance tax on public auction of all kind of property including confiscated or attached goods. Advance tax on purchase of air ticket Withholding tax on gross value of Inland Air Ticket has been proposed
Section 236B (Newly
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inserted section)
@ 5%. Under the scheme the Inland Air-Ticketing persons shall withhold the tax, which will be adjustable against the tax liability of the purchaser of such ticket.
Proposed amendments in The First Schedule Rate of Tax

1. Taxable income of business and salaried individuals up to Rs. 300,000/- will be exempt from tax. 2. The rate of tax imposed on the taxable income of association of persons for the tax year 2010 and onwards shall be @25%. 3. Turnover Tax on Loss Making Companies is proposed to be enhanced to @ 1%. 4. Small company shall pay tax @ 25%. 5. The rate of advance tax to be collected by the collector of customs u/s 148 (tax on imports) shall be 5% of the value of the goods. 6. The maximum rate of withholding tax deductible on payments made to non-resident taxpayers who are not subject to Avoidance of Double Taxation Treaties (other than payments made on account of royalty and fee for technical services) is proposed to be @ 20% instead of 30%. 7. Advance tax deductible on goods transport vehicles under Item (1) of Division-III of Part-IV of Second Schedule to the Income Tax Ordinance 2001 are proposed to be abolished, and tax is proposed @ Re.1 per kilogram of the laden weight capacity of goods transport vehicle. No change has been proposed in the rate of tax on goods forwarding contracts, which remain taxable at the existing rate of 2%. 8. The maximum rate of advance tax deductible under section 235 on monthly electricity bills is proposed to be reduced from 10% to 5%, on the amount of the bills payable.
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9. According to proposed amendment advance tax deductible on Cash Withdrawals from Banks, various banking transactions including modes like withdrawals through Demand Draft, Pay Order, Online Transfer, Telegraphic Transfer, TDR, CDR, STDR and RTC, are proposed to be subject to 0.3% deduction of the advance tax, if such transactions exceed threshold of Rs.25,000/- in a single day. The advance tax is adjustable. 10. Withholding tax on gross value of Inland Air Ticket has been proposed @ 5%. Under the scheme the Inland Air-Ticketing persons shall withholding the tax, which will be adjustable against the tax liability of the purchaser of such ticket. 11. The rate of tax on wining of cross word puzzle shall be @ 10% instead of 20%. 12. Income of the business individuals shall be subject to following tax rates: Sr. # 1. 2. 3. 4. 5. 6. 7. 8. Taxable Income Where taxable income does not exceed Rs.300,000 Where the taxable income exceeds Rs.300,000 but does not exceed Rs.400,000 Where the taxable income exceeds Rs.400,000 but does not exceed Rs.500,000 Where the taxable income exceeds Rs.500,000 but does not exceed Rs.600,000 Where the taxable income exceeds Rs.600,000 but does not exceed Rs.800,000 Where the taxable income exceeds Rs.800,000 but does not exceed Rs.10,00,000 Where the taxable income exceeds Rs.10,00,000 but does not exceed Rs.13,00,000 Where the taxable income exceeds Rs.13,00,000 Rate 0% 7.50% 10% 12.50% 15% 17.50% 21% 25%
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13. Income of the salaried individuals shall be subject to following tax rates: Sr. # 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Taxable Income Where taxable income does not exceed Rs.300,000 Where the taxable income exceeds Rs.300,000 but does not exceed Rs.350,000, Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000, Where the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000 Where the taxable income exceeds Rs.450,000 but does not exceed Rs.550,000, Where the taxable income exceeds Rs.550,000 but does not exceed Rs.650,000, Where the taxable income exceeds Rs.650,000 but does not exceed Rs.750,000, Where the taxable income exceeds Rs.750,000 but does not exceed Rs.900,000, Where the taxable income exceeds Rs.900,000 but does not exceed Rs.1,050,000, Where the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200,000, Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,450,000, Where the taxable income exceeds Rs.1,450,000 but does not exceed Rs.1,700,000, Where the taxable income exceeds Rs.1,700,000 but does not exceed Rs.1,950,000 Where the taxable income exceeds Rs.1,950,000 but does not exceed Rs.2,250,000, Where the taxable income exceeds Rs.2,250,000 but does not exceed Rs.2,850,000, Where the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550,000 Where the taxable income exceeds Rs.3,550,000 but does not exceed Rs.4,550,000, Rate 0.75% 1.50% 2.50% 3.50% 4.50% 6% 7.50% 9% 10% 11% 12.50% 14% 15% 16% 17.50% 18.50%
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18.
Where the taxable income exceeds Rs.4,550,000.
20%
14. Capital gain tax shall taxed as follows: Sr. # 1. Taxable Income Year Where holding period of a security is less than six 2010 months. 2011 2012 2013 2014 2. Where holding period of a security is more than six 2010 months but less than twelve months. 2011 2012 2013 2014 2015 Rate 10% 10% 12.5% 15% 17.5% 7.5% 8% 8.5% 9% 9.5% 10%
Proposed amendments in The Second Schedule Exemptions and Tax Concessions

PART I Clause (72) (Sub-clause inserted) Clause (92A) EXEMPTIONS FROM TOTAL INCOME For providing incentive to foreign lenders for tax-free repatriation of profits earned on foreign industrial loans, Clause 72(iii) of Part-IV of Second Schedule to the Income Tax Ordinance 2001 is proposed to be reinstated. Any income of any university or any other educational institution established in the most affected and moderately affected areas of Khyber
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(Newly inserted Pakhtunkhwa, FATA and PATA, for a period of two years ending on the clause) 30th day of June, 2011. Clause (102) (Clause omitted) Clause (110) (Clause omitted) Clause (110A) (Clause omitted) Clause (126F) Any gain on transfer of a capital asset of the existing stock exchanges to new corporatized stock exchange, in the course of corporatization of an existing stock exchange is no more exempt. On merger of Investment Corporation of Pakistan with Industrial Development Bank, the exemption available to ICP on dividend received from any other company is proposed to be withdrawn. Capital gains are no more exempt from tax.
Profits and gains derived by a taxpayer located in the most affected and moderately affected areas of Khyber Pakhtunkhwa, FATA and PATA for a (Newly inserted period of three years starting from the tax year 2010: clause) Provided that this concession shall not be available to the manufacturers and suppliers of cement, sugar, beverages and cigarettes PART II Clause (24A) REDUCTION IN TAX RATES
Large distribution houses who fulfill all the conditions for a large import house as laid down under clause (d) of sub section 7 of section 148, for (Amendment in large import houses are subject to 1% of gross amount of payments on clause) account of withholding under section 153.
PART III Clause (1A)
REDUCTION IN TAX LIABILITY
The Senior Citizens of the age of 60 years or more, are proposed to be eligible for relief of 50% of tax on their income, if their income does not (Amendment in exceed Rs.1,000,000/- as compared to previous maximum limit of clause) Rs.750,000/-. However this relief shall not be available on income subject to Presumptive Tax Regime.
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PART IV Clause (10A) (Newly inserted clause)
EXEMPTION FROM SPECIFIC PROVISIONS To rehabilitate the economy of Khyber Paktunkhwa, FATA and PATA following amendments are proposed: a) Waiver of entire amount of default surcharge & penalty till 30th June 2010; b) Exemption from advance tax on electricity for tax years 2010 and 2011; c) Exemption from withholding tax on exports; d) Exemption from advance tax on import of plant and machinery up to 30th June 2011; However these concessions shall not be available to manufacturers and suppliers of cement, sugar, beverages and cigarettes.
To mitigate part of the cost of obtaining foreign support to fill productivity gap, income tax payable by a foreign experts shall be (Newly inserted exempted provided that such expert is acquired with the prior approval clause) of the Ministry of Textile Industry. Clause (73)
Proposed amendments in The Third Schedule DEPRECIATION

PART I Depreciation table Depreciation For the wellbeing of disabled persons, 100% depreciation expense can be claimed on Ramp built to provide access to disabled persons, is proposed.
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Proposed amendments in The Fifth Schedule

PART I Rule 4A RULES FOR THE COMPUTATION OF THE PROFITS AND GAINS FROM THE EXPLORATION AND PRODUCTION OF PETROLEUM Decommissioning cost
(Newly inserted With effect from the Tax Year 2010, Decommissioning Cost as certified by a Chartered Accountant or a Cost Accountants, in the manner rule) prescribed, shall be allowed over a period of ten years or the life of the development and production or mining lease whichever is less, starting from the year of commencement of commercial production or commenced prior to the 1st July, 2010, deduction for decommissioning cost as referred earlier shall be allowed from the Tax Year 2010 over the period of ten years or the remaining life of the development and production or mining lease, which ever is less
Proposed amendments in The Seventh Schedule Rules for the computation of the profits and gains of a banking company and tax payable thereon
According to the proposed amendment provisions for advances and offbalance sheet items shall be allowed at 5% of total advances for (Amendment in consumers and small and medium enterprises (SMEs) (as defined under rule) the State Bank Prudential Regulations) shall be inserted Rule 1(c) Rule 8A Transactional provisions
(Newly inserted Amounts provided for in the tax year 2008 and prior to the said tax year for or against irrecoverable or doubtful advances, which were neither rule) claimed nor allowed as a tax deductible in any tax year, shall be allowed in the tax year in which such advances are actually written off against such provisions, in accordance with the provision of sections 29 and 29A. Amounts provided for in the tax year 2008 and prior to the said tax year for or against irrecoverable or doubtful advances, which were neither
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claimed nor allowed as a tax deductible in any tax year, which are written back in the tax year 2009 and thereafter in any tax year and credited to the profit and loss account, shall be excluded in computing the total income of that tax year under rule 1 of this Schedule. The provisions of this Schedule shall not apply to any asset given or acquired on finance lease by a banking company up to the tax year 2008, and recognition of income and deductions in respect of such asset shall be dealt in accordance with the provisions of the Ordinance as if this Schedule has not come into force: Provided that un-absorbed depreciation in respect of such assets shall be allowed to be set-off against the said lease rental income only
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PROPOSED AMENDMENTS IN SALES TAX ACT, 1990

SALES TAX REFORMS IMPLEMENTATION OF VAT
According to budget speech of finance minister The Government of Pakistan is committed to reform the existing system of General Sales Tax. The existing General Sales Tax (GST) has degenerated into an unfair tax, with multiple rates (between 16% and 25 %), exemptions and domestic zero rated facilities for vested groups and the privileged. It has also contributed greatly to the opportunities for corruption and rent seeking. The proposed GST reforms, will address both policy and administrative shortcomings of our current GST to remove all the deficiencies listed above. The proposed GST reform: - Will eliminate multiple tax rates and replace it with a single lower rate of 15%. - Will not apply on health, education and food items consumed by the poor. - Will not apply to turnover less than Rs. 7.5 million per year where as the current threshold is Rs 5 million per year. - Will be automated thus reducing possibilities of corruption and refund delay. - Will broaden the tax base instead of burdening the existing tax payer thus introducing greater equity into the tax system. We expect the proposed GST reform to be in place by October 1, 2010 in consultation with all the provinces and other stakeholders. Meanwhile as an interim measure the GST rates are proposed to be raised by 1 percentage point. Once the reform GST is in place the proposed single lower rate of 15 % will become effective. In addition, an accompanying relief measure of the GST reform will be the abolition of the current 1% Special Excise Duty presently levied on most items of imports and local manufacture. However, transitional proposed amendments in Sales Tax Act, 1990 are as follows: Section 2 (1) (Amendment in definition) Appellate Tribunal This amendment seeks to provide a unified Appellate Tribunal for domestic taxes. Many such changes have been proposed in the Finance Bill for the purpose of unifying domestic taxes. These
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changes were originally made vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. However, these are now being proposed in the Finance Bill to obtain the approval of the National Assembly. Section 2 (2) Appropriate officer and Associate (associated persons) and (3) As already discussed above, the amendment seeks to change the (Amendment names of the authorities mentioned in these definitions to represent the change already introduced by unifying three in definition) domestic taxes under one authority. i.e. Inland Revenue. These changes had been made vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. There are many such changes in the Sales Tax Act, the detail of which is as under: Section 2 (4A), Section 2 (5), Section 2 (15), Section 2 (18), Section 2 (46) (e), Section 10 (3), Section 11 (1), Section 11 (2), Section 11 (4), Section 11 (5), Section 21 (2), Section 23 (3), Section 25A, Section 26(3), Section 27, Section 28, Section 31, Section 32(1), Section 32A(2), Section 32A(3), Section 33, Section 36, Section 37, Section 37A, Section 38A, Section 38B, Section 40, Section 40B, Section 45A, Section 45B, Section 46, Section 47, Section 47A, Section 48, Section 49A, Section 52, Section 55, Section 58A, Section 58B, Section 66, Section 69 and Section 72. Section 3 (section amended) Scope of Tax It proposes to enhance the rate of Sales Tax from Sixteen to Seventeen percent.
Section 25 Access to record, documents etc. (1) and (2) Three important changes are proposed in this section. First, it is (section proposed that only Commissioner, and not an officer of sales tax, should be authorized to demand records under this section and amended) access to records should be allowed to officer authorize by the Commissioner. Second proposed change is that the officer who has completed the audit be allowed to pass order under relevant provisions of law,
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even without compulsorily obtaining any explanation from the registered person. Sub-section (3) makes it obligatory for the officer to issue audit observations to the registered person before issuing audit report. However, now it is proposed that it would be the discretion of the officer and not his obligation to obtain explanation from registered persons on the issues raised during the audit. This amendment takes away the right of registered person to explain his position to the revenue authorities before the issuance of show cause notice. Thirdly, it is proposed to done away with the issuance of audit report by the officer who had carried out the audit of the registered person. Section 25AA (Newly inserted section ) Transaction between associates The propose insertion authorize the Commissioner or an officer of Inland Revenue to determine the transfer price of taxable supplies between the persons to reflect the fair market value of the supplies. This section has already been inserted vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. 26 Return As already proposed to done away with the issuance of audit report after completion of the audit, any deposit of amount in lieu audit report become redundant. Therefore, the words in lieu of audit report are proposed to be deleted from this section. Appointment of authorities This amendment seeks to harmonize the appointment of authorities and empowering the Board to appoint authorities. This section has already been inserted vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010.
Section (4) (section amended) Section 30
(Section substituted)
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Section 32A(1) (section amended) Section 38
Special audit by Chartered Accountant or cost accountants This amendment proposed to authorize the Commissioner to appoint accountants to conduct special audit of records of registered persons. It further proposes to done away with the requirement to notify such appointments in the official Gazette. Authorized officer to have access to premises, stocks, accounts and records This amendment seeks to include Commissioner in addition to the Board who can authorize a person under the provisions of this section to have free access to business and manufacturing premises.
Section 45 (Section amended) Section 56 (Section substituted)
Power of Adjudication This section has already been deleted vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. Service of orders, decisions, etc. This section has already been substituted vide Finance (Amendment) Ordinance, 2009 dated October 28, 2009 and seeks to elaborate the procedures of service of orders, decisions and notices by the tax authorities on the resident individual, other than individuals, AOPs and discontinued businesses.
Section 72A Reference to Authorities (New Section This section is inserted to clarify that the reference to various inserted) authorities with their previous nomenclature/designations shall be construed as reference to authorities with the new nomenclature/designation given in Section 2. Section 72B Selection for audit by the Board
(New Section This new section seeks to authorize Board to select the persons inserted) or classes of person for audit of tax affairs through computer ballot on random or parametric basis as it deems fit.
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PROPOSED AMENDMENTS IN FEDERAL EXCISE ACT, 2005

Section 2(3) (Amendment in definition) Appellate Tribunal This amendment seeks to provide unified Appellate Tribunal for domestic taxes. Many such changes have been proposed to brought in line the change already made by unifying domestic taxes. These changes had been made vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. However, these are now being proposed in the Finance Bill to obtain the approval of the National Assembly. Chief Commissioner Chief Commissioner means a person appointed as Chief Commissioner Inland Revenue under section 29 of the Federal Excise Act, 2005. A new authority Chief Commissioner has been introduced under Federal Excise Act, 2005. Section 2(5) (Amendment in definition) Commissioner Commissioner means a person appointed as Commissioner Inland Revenue under section 29 of the Federal Excise Act, 2005. The previous designation of the Collector Federal Excise under the Federal Excise Act, 2005 has been replaced with Commissioner Inland Revenue to harmonize the authorities and designation with the income tax law. Editorial changes are recommended throughout this Act to replace the word Collector to Commissioner. Section 2(12A) (Amendment in definition) Officer of Inland Revenue Officer of Inland Revenue means any officer appointed by the Board as officer of Inland Revenue under section 29 or any person including an officer of the Provincial Government vested by the Board with any of the powers of an officer of Inland Revenue under this Act or rules made there under.
Section 2(4A) (Newly inserted definition)
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The previous designation of Federal Excise Officer has been replaced with new designation of Officers of Inland Revenue to harmonize the authorities and designation with the income tax. Editorial changes are recommended throughout this Act to replace the word Federal Excise Officer to Officer of Inland Revenue. Section 17 (Amendment in Section) Records According to the proposed amendment for every registered person record is required to be maintained for 6 years or till the final decision in any proceedings for assessment, appeal, revision, reference, petition and any proceedings before an Alternative Dispute Resolution Committee, whichever is earlier. Before the substitution by it every registered person was required to maintain the record for 5 years only. Section 31 (Section Omitted) Power of Adjudication This section has been proposed to abolish. Before the proposed amendment this section of the Federal Excise Act, 2005 deals with the powers of adjudication of different Federal Excise Officers. Under this section Federal Excise Officer was vested with the power to adjudicate the case within 60 days. Reference to High Court
Section 34A
(Newly inserted After section 34 a new section 34A is proposed to be inserted which provides the procedure and manner for filing reference to High Court. Section) Under this section, within 90 days of the communication of the order of the Appellate Tribunal, the aggrieved person or the Commissioner may prefer an application in the prescribed form along with a statement of the case to the High Court stating any question of law arising out of such order. If the High Court is satisfied that a question of law arises out of the Tribunals order it may proceed to hear the case by a Bench of not less than two judges. The High Court upon hearing a reference under
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this section shall decide the question of law raised by the reference and pass judgment thereon specifying the grounds on which such judgment is based and the Tribunals order shall stand modified accordingly and a copy of the judgment under the seal of the Court be provided to the Appellate Tribunal. Further, the High Court may, on application by the Commissioner within thirty days of the receipt of the judgment of the High Court that he wants to prefer petition for leave to appeal to the Supreme Court, make an order authorizing the Commissioner to postpone the order of the High Court until the disposal of the appeal by the Supreme Court. Where recovery of tax has been stayed by the High Court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it was made unless the appeal is decided or such order is withdrawn by the High Court earlier. Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application made to the High Court under sub-section (1). Section 42A Reference to Authorities
(Newly inserted After section 42 a new section 42A is proposed to be inserted which Section) provides that any reference to Collector, Additional Collector, Deputy Collector, Assistant Collector, Superintendent and an officer of Federal Excise, wherever occurring, in this Act and the rules, notifications, clarifications, general orders or orders made or issued there under, shall be construed as reference to Commissioner Inland Revenue, Additional Commissioner Inland Revenue, Deputy Commissioner Inland Revenue, Assistant Commissioner Inland Revenue, Superintendent Inland Revenue and an officer of Inland Revenue, respectively.
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Section 42B
Audit
(Newly inserted Due to the proposed amendment the Board may lay down criteria for Section) selection of any person or class of persons for an audit of such persons FED record and documents. Further, editorial changes were made to accommodate the word class of persons in this section. Section 46 (Amendment in Section) Completion of Audit According to the proposed amendment, after completion of Audit under this section or any other provision of law the Officer of Inland Revenue may pass an order imposing the correct amount of duty, charging default surcharge, imposing penalty and recovery of any amount erroneously refunded. Service of Notice Through the proposed amendment the Board may lay down the procedure for the service of any notice, order or requisition for the purpose of this Act.
Section 47 (Amendment in Section)
Proposed changes in rates of duty

Sr. Nature of Nos. Services 1. 2. Goods and Current Rate of Duty 64% of retail price 64% of retail price Proposed Rate of Duty 65% of retail price 65% of retail price
3.
Cigars, cheroots, cigarillos and cigarettes, of tobacco substitutes. Locally produced cigarettes if their retail price (nineteen rupees per fifty paisa) per ten cigarettes. Locally produced cigarettes if their retail price exceeds ten rupees per ten cigarettes but does not nineteen rupees and
Rs. 4.75/- per ten cigarettes
Rs. 5.25/- per ten cigarettes
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fifty paisa cigarettes. 4.
per
ten Rs. 4.75/- per ten cigarettes. Rs. 5.25/- per ten cigarettes
Locally produced cigarettes if their retail price does not exceed (Ten rupees) per ten cigarettes. Cigarettes manufactured by a manufacturer. Natural gas in gaseous state.
5. 6.
64% of retail price Rs. 5.09/- per million British thermal units (MMBTu) Rs. 5.09/- per million British thermal units (MMBTu) ___ ___
65% of retail price Rs. 10/- per million British thermal units (MMBTu) Rs. 10/- per million British thermal units (MMBTu) Rs. 1/- per filter rod 10% ad val 10% ad val
7.
Other petroleum Gases in gaseous state. Filter rods for cigarettes Air Conditioners Deep Freezers
8. 9. 10.
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PROPOSED AMENDMENTS IN THE CHAIRMAN AND SPEAKER (SALARIES, ALLOWANCES AND PRIVILEGES) ACT, 1975 (LXXXII OF 1975)
Section 2(b) Chairman (Amendment in The proposed amendment seeks to include in the definition of the chairman, the person who shall hold the office of the chairman after definition) election will also entitled to the privileges as prescribed in sections 13 and 18. Section 2(g) Speaker
(Amendment in The proposed amendment seeks to include in the definition of the speaker, the person who shall hold the office of the speaker after definition) election for the purpose of privileges as prescribed in sections 13 and 18. Section 17A Discretionary Grant
(Amendment in The proposed amendment seeks to entitle / authorise the Chairman and the Speaker to discretionary grant of one million per annum (previously section) six hundred thousand). Section 18 Additional privileges
(Amendment in The proposed amendment seeks to give power to the Finance committee of the senate or National assembly to grant the chairman and speaker section) such additional privileges as it may deem fit.
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PROPOSED AMENDMENTS IN CUSTOMS ACT, 1969 (IV OF 1969)

Section 2(aaa) Appellate tribunal (Amendment in This amendment seeks to provide unified Appellate Tribunal for domestic taxes. Many such changes have been proposed to brought in definition) line the change already made by unifying domestic taxes. These changes had been made vide Finance (Amendment) Ordinance, 2009 and Finance (Amendment) Ordinance, 2010. However, these are now being proposed in the Finance Bill to obtain the approval of the National Assembly. Section 2(s) Smuggle
(Amendment in The proposed amendment seeks to include those goods in the definition of smuggle that have value exceeding one hundred and fifty thousand definition) (previously this limit was fifty thousand). Section 25 (15) Customs value of exported goods (b) The proposed amendment seeks to include regulatory duty determined (Amendment in by the federal government under section 18(3) in determining the section) customs value of exported goods, instead of the export duty. Section 25A Power to determine the customs value
(addition of new The proposed amendment seek to clarify the validity of the value of goods determined by the Collector of Customs, the Director of Customs subsection) Valuation or by the Director-General of Customs Valuation, until and unless revised or rescinded by the competent authority. Section 25D Review of the value determined
(Substitution of The proposed amendments seeks to clarify that the review application shall be filed before Director General Valuation only when the value is section) determined by the director valuation or collector of customs under section 25A and to fix a time limit of 30 days for filing of review application.
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Section 27A
Allowing mutilation or scraping of certain goods
(Substitution of The proposed amendment seeks to restrict the permission for mutilation or scrapping of certain goods, notified by the board imported section) with scrap consignments in serviceable condition. Section 32(5) (Insertion new clause) Relevant date means of The proposed amendment seeks to define the relevant date i.e. the date of detection on post clearance audit, in case of clearance of goods through customs computerized system, on self assessment or electronic assessment. The proposed amendment seeks to include the words payment of revenue through self assessment to restrict the wrong self assessment on part of the dishonest importers.
Section 32A(1)(c) (Amendment in section)
Section 79(1) Filing of goods declaration First Proviso The proposed amendment seeks to include the words in case of used (Amendment in goods to restrict the facility of filing goods declaration after examining the goods by the importer, to the used goods only. The permission of section) filing of goods declaration would be granted by Additional Collector. Section 81(2) & Provisional determination of liability (5) The proposed amendment seeks to reduce the period of determining the (Amendment & correct amount of duty, taxes and charges within three months of the insertion of new date of provisional determination in order to accelerate the process of finalization of provisional assessment. After final determination the sub section) appropriate officer shall issue order for adjustment, refund or recovery of amount secured, as the case may be. Section 156(1)(1) Punishment for offences
The proposed amendment seeks to increase the penalty from twenty (Amendment in five thousand to fifty thousand for contravening any provision of Customs Act, 1969 and to increase the penalty from not exceeding section) twenty five thousand to not less than the twice of the value of goods
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in case of violation of section 128 & 129 of Customs Act. Section 194(1) Appellate Tribunal
(Amendment in The proposed amendment seeks to omit the words Excise & Sales Tax section) from the definition of Appellate Tribunal. Section 194A(e) (Insertion new section) of Appeals to the Appellate Tribunal The proposed amendment Seeks to add in a new clause (e) which would enable any person or an officer of Customs to file an appeal before the Appellate Tribunal in cases of review order passed by the Director General Customs Valuation under section 25D provided the appeal is heard by the double bench of the Appellate Tribunal.
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PROPOSED AMENDMENTS IN THE PETROLEUM PRODUCTS (SURCHARGE) ORDINANCE, 1961 (XXV OF 1961)
Preamble of the The proposed amendment seeks to substitute in the preamble of the Ordinance ordinance the words petroleum levy for word surcharge. (Amendment preamble) Section 1(1) (Amendment section) in in The proposed amendment seeks to substitute the words petroleum levy for the word surcharge.
Section 2 (4Ba) The proposed amendment seeks to omit the word development in order & (4D) to make short title from section 4(Ba) and to omit clause 4(D). (Omission and Amendment in section) Section 3 (Amendment section) Section 3(1) (Amendment section) Section 3(1A) The proposed amendment seeks to substitute in the marginal note, the words petroleum levy for the words Development Surcharge to make in this section according to preamble. The proposed amendment seeks to substitute in the marginal note, the words petroleum levy for the words development surcharge to make in this section according to preamble.
The proposed amendment seeks to insert a new sub-section (1A) Every Company and licensee shall pay the petroleum levy in such manner as the (Insertion of ne Federal Government may, by rules, prescribe to provide transparency. sub-section) Section 3A The proposed amendment seeks to substitute the words petroleum levy
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(Amendment section)
in for the words development surcharge to keep similarity of words.
Section 3A(2)(b) The proposed amendment seeks to substitute the words Federal Excise Act, 2005 for Central Excise Act, 1944 as latest Act has been (Amendment in promulgated. section) Section 3A(3) (Amendment section) Section 3A (Amendment section) Section 5 (Amendment section) Section 5 (Amendment section) Section 5 (Amendment section) Section 5 (Amendment section) Section 6 (Amendment section) in in in in The proposed amendment seeks to substitute the words Federal Excise Act, 2005 for Central Excise Act, 1944 as latest Act has been in promulgated. The proposed amendment seeks to omit from the margin the figure and word I of 1944 as latest Act has been promulgated.
The proposed amendment seeks to substitute in the marginal note, the words petroleum levy the words development surcharge to provide in similar words. It is proposed to substitute the words petroleum levy for development surcharge to provide similar words.
The proposed amendment seeks to substitute the words Income Tax Ordinance 2001 for Income Tax Ordinance, 1979 on account of in promulgation of latest Ordinance. The proposed amendment seeks to omit from the margin, the figures and word XXXI of 1979 as new Act has been promulgated.
The proposed amendment seeks to substitute the words petroleum levy for development surcharge to provide similar words in the Ordinance.
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Section 8 (Amendment section) Section 8 (Amendment section) Section 9
The proposed amendment seeks to omit the words or Secretary of Oil Companies Advisory Committee or his duly authorized nominee because in prices of petroleum products are being regulated by the OGRA. The proposed amendment seeks to omit the Explanation, as it no more exists.
in
The proposed amendment seeks to add a new section after section 8 of the Ordinance in order to avoid legal complications and validate revenue (Insertion of new already received by the Government. section) Fifth Schedule (Amendment Schedule) The proposed amendment seeks to substitute fifth schedule in the Ordinance to provide transparency by fixing rates of petroleum products. in The proposed new rates are: S. No. 1. 2. 3. 4. 5. 6. Petroleum Products High Speed Diesel Oil (HSDO) Motor Gasoline 87 ROM SKO Light Diesel Oil (LDO) HOBC E-10 Gasoline Petroleum Levy Rate (Rupees per liter) 8 10 6 3 14 9
54

Budget Insight 2010

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2010-2011

Avais Hyder Liaquat Nauman

[BUDGET INSIGHT - 2010]

Finance Bill 2010

Avais Hyder Liaquat Nauman Chartered Accountants Pakistan

Finance Bill 2010

With Compliment To our Valued Clients and Associates

Avais Hyder Liaquat Nauman Chartered Accountants

Finance Bill 2010

PROPOSED AMENDMENTS IN CUSTOMS ACT, 1969 (IV OF 1969)......................................49

Finance Bill 2010

SENIOR PARTNERS MESSAGE

Finance Bill 2010

STATE OF THE PAKISTAN ECONOMY

Finance Bill 2010

Finance Bill 2010

11.6 Favourable Favourable

1.8 US$ 3.2 billion Unfavourable 5.2% Unfavourable

Finance Bill 2010

Finance Bill 2010

SUMMARY OF BUDGET 2010-11

Finance Bill 2010

xiii. xiv. xv. xvi. xvii.

Finance Bill 2010

Finance Bill 2010

SALES TAX & FEDERAL EXCISE DUTY

Finance Bill 2010

Finance Bill 2010

Finance Bill 2010

Finance Bill 2010

viii. ix. x. xi.

Finance Bill 2010

PROPOSED AMENDMENTS IN INCOME TAX ORDINANCE, 2001

Section 13 (Amendment in section)

Finance Bill 2010

Section 37A (Newly inserted section)

Finance Bill 2010

Section 111 (Amendment in section)

Finance Bill 2010

Finance Bill 2010

Section 118(3) (section substituted)

Section 122 (Newly inserted section)

Section 122C (Newly inserted section)

Finance Bill 2010

Finance Bill 2010

Section 146B (Amendment in section) Section 147 (Amendment in section)

Finance Bill 2010

Section 153 (Amendment in section)

Finance Bill 2010

Section 177 (Newly inserted section)

Finance Bill 2010

Section 182 (Section substituted)

Finance Bill 2010

Finance Bill 2010

Finance Bill 2010

Finance Bill 2010

20, 111 and General.

209, 210 and General

Finance Bill 2010